HomeMy WebLinkAbout09-09 - Amendemt of Contract Between City and Board of Admin of CALPERSORDINANCE NO. 09-9
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA, CALIFORNIA, AUTHORIZING AN
AMENDMENT TO THE CONTRACT BETWEEN THE CITY
OF COSTA MESA AND BOARD OF ADMINISTRATION OF
THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM.
WHEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES
HEREBY ORDAIN AS FOLLOWS:
WHEREAS, due to the current recessionary economic climate, the City will be
unable to balance its next fiscal year's budget without exercising significant spending
reductions and other alternatives; and
WHEREAS, the City has already suspended all recruiting/hiring activities, including
at least 18 full-time positions that are either being held vacant or have been eliminated;
and
WHEREAS, the City anticipates the need to further reduce staffing levels; and
' WHEREAS, offering a CalPERS Retirement Incentive could create additional
vacancies and reduce the number of personnel that may be laid off as a result of
reductions in departmental operating budgets; and
WHEREAS, Government Code 20903 allows the City to provide 'Two Years
Additional Service Credit" to qualifying employees who retire in the event of impending
mandatory transfers, demotions or layoffs by amending its contract with CalPERS.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES
HEREBY ORDAIN AS FOLLOWS:
Section 1. That an amendment to the contract between the City Council of the
City of Costa Mesa and the Board of Administration, California Public Employees'
Retirement System is hereby authorized, a copy of said amendment being attached hereto,
marked Exhibit "A," and by such reference made a part hereof as though herein set out in
full.
Section 2. The Mayor of the City of Costa Mesa is hereby authorized,
empowered, and directed to execute said amendment for and on behalf of said Agency.
Section 3. The Mayor shall sign and the City Clerk shall certify to the passage
' and adoption of this Ordinance and shall cause the same to be published and posted
pursuant to the provisions of law.
Section 4. This Ordinance shall take effect and be in full force thirty (30) days
from and after the passage thereof, and prior to the expiration of fifteen (15) days from its
passage shall be published once in the NEWPORT BEACH/COSTA MESA DAILY PILOT,
a newspaper of general circulation, printed and published in the City of Costa Mesa or, in
the alternative, the City Clerk may rause to be published a summary of this Ordinance and
a certified copy of the text of this Ordinance shall be posted in the office of the City Clerk
five (5) days prior to the date of adoption of this Ordinance, and within fifteen (15) days
after adoption, the City Clerk shall rause to be published the aforementioned summary and
shall post in the office of the City Clerk a certified copy of this Ordinance togetherwith the
names and member of the City Council voting for and against the same.
PASSED AND ADOPTED this 18' day of August, 2009.
ATTEST:
Juli Folcik, City Clerk
Allan R. Mansoor, Mayor
APPROVED AS TO FORM:
mberly Kall Barlow, City Attorney
1
1
STATE OF CALIFORNIA )
' COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
1
I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that
the above and foregoing Ordinance No. 09-9 was duly introduced for first reading at a
regular meeting of the City Council held on the 21't day of July, 2009, and that thereafter,
said Ordinance was duly passed and adopted at a regular meeting of the City Council held
on the 18� day of August, 2009, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: MANSOOR, LEECE, FOLEY, MONAHAN
NOES: COUNCIL MEMBERS: BEVER
ABSENT: COUNCIL MEMBERS: NONE
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 19� day of August, 2009.
E2JULICITY CLERK
(SEAL)
I hereby certify that the above and foregoing is the original of Ordinance No. 09-9 duly
passed and adopted by the Costa Mesa City Council at the regular meeting held August
18, 2009, and that Summaries of the Ordinance were published in the Newport Beach -
Costa Mesa Daily Pilot on July 31, 2009 and August 25, 2009.
JULP FOLCIK, CITY CLERK
California
Public Employees' Retirement System
AW
EXHIBIT
AMNDMNT TO CONTRACT
Between the
Board of Administration
California Public Rmployees' Retirement System
and the
City Council
City of Costa Mesa
The Board of Administration, California Public Employees' Retirement System, hereinafter
referred to as Board, and the governing body of the above public agency, hereinafter
referred to as Public Agency, having entered into a contract effective August 13, 1978, and
witnessed August 7, 1978, and as amended effective July 15, 1979, October 25, 1987,
October 30, 1992, September 18, 1994, January 4, 1996, June 2, 1998, June 16, 2000,
December 31, 2000, May 20, 2001, December 19, 2002 and September 28, 2008 which
provides for participation of Public Agency in said System, Board and Public Agency
hereby agree as follows:
A. Paragraphs 1 through 16 are hereby stricken from said contract as executed
effective September 28, 2008, and hereby replaced by the following paragraphs
numbered 1 through 17 inclusive:
1. All words and terms used herein which are defined in the Public Employees'
Retirement Law shall have the meaning as defined therein unless otherwise
specifically provided. "Normal retirement age" shall mean age 55 for local
miscellaneous members, age 55 for local fire members and age 50 for local
police members.
2. Public Agency shall participate in the Public Employees' Retirement System
from and after August 13, 1978 making its employees as hereinafter
provided, members of said System subject to all provisions of the Public
Employees' Retirement Law except such as apply only on election of a
contracting agency and are not provided for herein and to all amendments to
said Law hereafter enacted except those, which by express provisions
thereof, apply only on the election of a contracting agency.
3. Public Agency agrees to indemnify, defend and hold harmless the California
Public Employees' Retirement System (CaIPERS) and its trustees, agents
and employees, the CaIPERS Board of Administration, and the California
Public Employees' Retirement Fund from any claims, demands, actions,
losses, liabilities, damages, judgments, expenses and costs, including but
not limited to interest, penalties and attorneys fees that may arise as a result
of any of the following:
(a) Public Agencys election to provide retirement benefits, provisions
or formulas under this Contract that are different than the
retirement benefits, provisions or formulas provided under the
Public Agency's prior non-CaIPERS retirement program.
(b) Public Agency's election to amend this Contract to provide
retirement benefits, provisions or formulas that are different than
existing retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party other than CaIPERS
to provide retirement benefits, provisions, or formulas that are
different than the retirement benefits, provisions or formulas
provided under this Contract and provided for under the Califomia
Public Employees' Retirement Law.
(d) Public Agency's election to file for bankruptcy under Chapter 9
(commencing with section 901) of Title 11 of the United States
Bankruptcy Code and/or Public Agency s election to reject this
Contract with the CaIPERS Board of Administration pursuant to
section 365, of Title 11, of the United States Bankruptcy Code or
any similar provision of law.
(e) Public Agency's election to assign this Contract without the prior
written consent of the CaIPERS' Board of Administration.
(f) The termination of this Contract either voluntarily by request of
Public Agency or involuntarily pursuant to the Public Employees'
Retirement Law.
(g) Changes sponsored by Public Agency in existing retirement
benefits, provisions or formulas made as a result of amendments,
additions or deletions to California statute or to the California
Constitution.
4. Employees of Public Agency in the following classes shall become members
of said Retirement System except such in each such class as are excluded
by law or this agreement:
a. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety members);
C. Employees other than local safety members (herein referred to as
local miscellaneous members).
5. In addition to the classes of employees excluded from membership by said
Retirement Law, the following classes of employees shall not become
members of said Retirement System:
NO ADDITIONAL EXCLUSIONS
6. Assets heretofore accumulated with respect to members in the local
retirement system have been transferred to the Public Employees'
Retirement System on September 18, 1994 and applied against the liability
for prior service incurred thereunder. That portion of the assets so
transferred which represent the accumulated contributions (plus interest
thereof) required of the employees under said local system has been
credited to the individual membership account of each such employee under
the Public Employees' Retirement System.
7. Benefits paid to pensioner or annuitants under the local system on or prior to
September 18, 1994 shall be continued and paid at their existing rates by the
Public Employees' Retirement System as authorized by Section 20481 of the
Government Code.
8. The percentage of final compensation to be provided for local miscellaneous
members in employment before and not on or after September 28, 2008 for
each year of credited prior service is 0% and the percentage of final
compensation to be provided for each year of credited current service is
100% and determined in accordance with Section 21354 of said Retirement
Law (2% at age 55 Full).
9. The percentage of final compensation to be provided for local miscellaneous
members in employment on or after September 28, 2008 for each year of
credited prior service is 0% and the percentage of final compensation to be
provided for each year of credited current service is 100% and determined in
accordance with Section 21354.4 of said Retirement Law (2.5% at age 55
Full).
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a local police member shall be
determined in accordance with Section 21362.2 of said Retirement Law (3%
at age 50 Full).
11. The percentage of final compensation to be provided for each year of
credited prior and current service as a local fire member shall be determined
in accordance with Section 21363.1 of said Retirement Law (3% at age 55
Full).
12. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 20042 (One -Year Final Compensation).
b. Section 20965 (Credit for Unused Sick Leave).
C. Sections 21624 and 21626 (Post -Retirement Survivor Allowance).
d. Section 21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous members only.
e. Section 20903 (Two Years Additional Service Credit).
f. Section 20938 (Limit Prior Service to Members Employed on Contract
Date) for local safety members only.
g. Section 21536 (Local System Service Credit Included in Basic Death
Benefit) for local safety members only.
h. Section 21427 (Improved Nonindustrial Disability Allowance) for local
fire members.
i. Section 21031 (Public Service Credit for Limited Prior Service) for
local miscellaneous members only.
' j. Section 21024 (Military Service Credit as Public Service).
Ic Section 21027 (Military Service Credit for Retired Persons).
Section 21023.5 (Public Service Credit for Peace Corps, AmeriCorps
VISTA, orAmeriCorps Service).
13. Public Agency, in accordance with Government Code Section 20834, shall
not be considered an "employer" for purposes of the Public Employees'
Retirement Law. Contributions of the Public Agency shall be foxed and
determined as provided in Government Code Section 20834, and such
contributions hereafter made shall be held by the Board as provided in
Government Code Section 20834.
14. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with
respect to local miscellaneous members and local safety members of said
Retirement System.
15. Public Agency shall also contribute to said Retirement System as follows:
' a. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21573 of said Retirement
Law. (Subject to annual change.) In addition, all assets and liabilities
of Public Agency and its employees shall be pooled in a single
account, based on term insurance rates, for survivors of all local
miscellaneous members and local safety members.
b. A reasonable amount, as fixed by the Board, payable in one
installment within 60 days of date of contract to cover the costs of
administering said System as it affects the employees of Public
Agency, not including the costs of special valuations or of the periodic
investigation and valuations required by law.
C. A reasonable amount, as fixed by the Board, payable in one
installment as the occasions arise, to cover the costs of special
valuations on account of employees of Public Agency, and costs of
the periodic investigation and valuations required by law.
16. Contributions required of Public Agency and its employees shall be subject to
adjustment by Board on account of amendments to the Public Employees'
' Retirement Law, and on account of the experience under the Retirement
System as determined by the periodic investigation and valuation required by
said Retirement Law.
17. Contributions required of Public Agency and its employees shall be paid by
Public Agency to the Retirement System within fifteen days after the end of
the period to which said contributions refer or as may be prescribed by Board
regulation. If more or less than the correct amount of contributions is paid for
any period, proper adjustment shall be made in connection with subsequent
remittances. Adjustments on account of errors in contributions required of
any employee may be made by direct payments between the employee and
the Board.
B. This amendment shall be effective on the _ day of
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF COSTA MESA
BY BY
LORI MCGARTLAND, CHIEF PRESIDING OFFICER
EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk